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Recruiting and Managing Scam Workers Is Enough for Co-Perpetrator Liability, Even Without Directly Deceiving Victims

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The Supreme Court has confirmed a six-year sentence for a man who served as a recruiter and Korean-language manager at a Cambodia-based stock trading scam operation, ruling that organizing and managing the scheme’s workforce establishes co-perpetrator liability for fraud — even without any direct contact with the victims who were deceived. Here are the key points.

Issue

Can a person be held liable as a co-perpetrator of organized fraud where their role was limited to recruiting and managing fellow scam workers, without personally deceiving any of the victims?

Facts

  • A joined a Cambodia-based “leading room” stock investment scam operation in January 2024, when its office was first established, serving as a recruiter and the Korean-national manager responsible for overseeing staff.
  • The operation defrauded 28 victims of a combined total of approximately ₩4 billion under the guise of investment opportunities.
  • Prosecutors indicted A in April 2025 on charges including participation in and activity within a criminal organization, along with fraud.

Lower Court Decisions

  • The trial court sentenced A to six years in prison, finding the following facts established: A frequently visited the operation’s office, possessed detailed knowledge of the organizational structure, salary arrangements, work rules, and the management of accounts used to receive victim funds, and lived in housing provided by the organization for approximately three months. The court found it reasonable to conclude A had been responsible for recruiting and managing organization members.
  • The appellate court dismissed appeals from both A and the prosecution. It found A had been directly involved in recruiting workers — explaining working conditions and compensation to prospective recruits — and had also played a role in distributing plane tickets to Cambodia for newly recruited staff. On the prosecution’s argument that the sentence was too lenient, the court found the trial court’s sentencing discretion had not been exceeded.

Supreme Court Decision

  • The Supreme Court (Criminal Division 1, presiding Justice Shin Suk-hee) dismissed A’s appeal and confirmed the six-year sentence.
  • The court found no error in the lower courts’ fact-finding or in their application of the law governing co-perpetrator liability.

Key Takeaways

  • Co-perpetrator liability for organized fraud does not require personal contact with or direct deception of victims. A role in recruiting and managing the personnel who carry out the deception can independently establish that liability.
  • Detailed knowledge of the organization’s internal operations — compensation structures, work rules, and the handling of victim funds — is strong circumstantial evidence of a managerial role within a criminal enterprise, even absent direct participation in any specific fraudulent communication with victims.
  • Practical involvement in logistics supporting the scheme — such as arranging travel for recruited staff — further reinforces a finding of meaningful organizational participation, distinguishing a defendant from a mere bystander or low-level employee.
  • Sustained physical presence at the operation’s premises and residence in organization-provided housing are relevant factors supporting an inference of active organizational involvement rather than incidental association.

Why This Matters

This ruling is significant for how Korean courts assign criminal responsibility within large, hierarchically organized fraud operations — particularly the increasingly common overseas “leading room” investment scam model. It confirms that those who build and manage the operation’s workforce bear the same co-perpetrator liability as those who directly defraud victims, even without ever speaking to a single victim themselves. For prosecutors, the decision validates a structural approach to charging organized fraud cases that focuses on each participant’s functional role within the enterprise. For individuals recruited into such operations in management or recruiting capacities, the case is a clear warning that organizational involvement — distinct from direct deception — carries serious and independent criminal exposure.

Article: https://www.lawtimes.co.kr/news/articleView.html?idxno=222192&page=2&total=25168

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